Gold is a Risky Investment

I have not updated this blog in a while, but thought it was worth reminding people of something that has not been true for many years - Gold is a Risky Investment. Now, this might seem ridiculous, especially considering I will further quantify it by saying I believe in the long-term fundamentals, international inflation prospects of Western nations and the will of government to do all it can to save it’s own skin at the expense of your life savings. Given that last factor, especially, nothing will do as well in the next 10 years as gold…except maybe silver…and food…but that is for another day.

However, look at where the price of gold is now. No-one should be surprised to invest and see it fall, even short term, by 40-50% back to the 900$ level. What am I basing this on? It is exactly what happened in 1976, when it fell from 200$ to 100$, even as the long term trend was for gold to move another 5 times higher in 4 years. 1976 must have been a very hard year to sit there and talk to your friends about gold and reconcile the long term belief with what was really happening in the market.

The point I want to make is that anything is a risk, but gold is much more of a risk at 1800$ than it was at 400$, when it really could not have fallen much further at all.

What can you do about it, even if you want to invest in gold or silver now? Invest monthly in small amounts, via physical bullion ETFs or the internet gold sites such as BullionVault or Goldmoney and promise within yourself to keep those monthly savings going, after all, falling prices mean you actually buy more ounces each month!

BullionVault Explained

Founded by Paul Tustain, Bullionvault is UK-based, although an additionally interesting feature is the ability to store your gold in their New York, London or Zurich gold vaults. Dependent on which country you are a citizen of, you will probably feel most comfortable placing your gold outside of that country so that is not subject to your local government jurisdiction, so top marks for considering that feature.

BullionVault allows you to buy and sell Gold on their impressive looking trading platform, where buyers and sellers of gold from each vault can meet and state their required selling/buying prices, so if you are more inclined to hold gold, occasionally sell on a dip, then buy in again later, then this could well be the best service for you.

Their fees for transactions and monthly storage are really low too, so they are very worthy of investigation. The storage fee is currently $4 per month fixed, regardless of holding size, and only payable for the months in which you held Gold.

Again, Bullionvault has proved popular with Gold Bugs accumulating gold for the future financial crisis they believe is in the offing.

Payment in to BullionVault is by bank transfer. Payment out is by bank wire transfer to your chosen bank account. A fee of approximately $30 is charged for this transfer, although there may be possibilities for UK residents to request a BACs transfer instead, which can take a few days but will not attract a fee.

BullionVault are currently offering a free gram of gold to all new account openings, which you can then use to experiment with trading in their system. Even if you open an account, you are not committed in any way, so well worth trying out to see if it’s for you. Visit http://www.investgold.co.uk to learn more.

Overall, Bullionvault is an excellent service. Both they and E-gold seem like decent operations, with much security behind them.

More Gold Investing Scammers

I couldn't help but visit this GoogleAd, Gold investing classic

http://pinvest.biz/index.html

Which offers an amazing 1800% in 48 hours! Wow! With that kind of return I could own all the e-gold in the entire world within about 3 months.

I'll leave it up to you to decide if it's genuine or a scam, but with no address, telephone number or contact other than admin@ email address, I have already drawn my own conclusions.

Please don't do it...